For the Investor

Helping People in Pre-foreclosure

There are many people that are facing pre-foreclosure and many of those people would like to keep their house. Investors have the power to help the keep their house or they can be cruel and kick them out. I personally don’t condone that method, but some people are monsters and would do anything for a buck. I, myself, would like to help people keep their homes. The more you help people the better returns you’ll get. There are ways to keep them in there home. Here are a few examples:

• A loan modification (Refinance)-This can help especially if there is equity in the house.

• Forbearance- This is a repayment plan offered by some lenders. You have to be current in order to be in forbearance and you have to prove financial hardship.

• Talking with the bank or lender- Sometimes talking with the lender can help, there could be other payment plans offered to help the situation.

• Chapter 13 Bankruptcy- This is a method that I see as a last resort, simply because it can destroy a person’s credit for a long time.

If these methods don’t work then the owner would want to sell the house. At this point I would sell the house and try to put the buyer in a smaller house or a rental.